Navigation traffic in the Strait of Hormuz has plummeted

Washington – Agencies: The Wall Street Journal reported that the movement of oil tankers and commercial vessels through the Strait of Hormuz has plummeted from 130 to just 26 ships per day, amid the risks of attacks and soaring insurance costs. The newspaper added that data from ship-tracking systems showed that only 14 vessels transited the strait on Tuesday, whereas this maritime passage typically saw more than 130 ships daily before the war began. The Journal noted that “Tehran has effectively imposed its control over the Strait of Hormuz without direct engagement with the U.S. Navy.” As a result of the heightened risks, insurance costs for a single voyage have risen by $3 million to $10 million, forcing tankers either to turn off their transponders or seek permission to pass from the Iranian Revolutionary Guard Corps, according to the report. It further explained that the collapse of the June agreement to resume navigation threatened the stability of the global energy market, which has lost an estimated 2.6 billion barrels of oil since the escalation of the conflict in February, according to Saudi Aramco CEO Amin Nasser.